Also a very good post, sir.

At the time, when GM was criticized for spending so much on trucks and SUVs, their response was "That's what people are buying". What they so artfully ignored was that on the car side, Japaneese brands who were investing in cars were eating ever increasing slices of sales at GM's expense. What GM should have been saying was "We get bigger profits on each large SUV and truck we sell than we do on cars".

I love Bob Lutz, and some of the other great people from GM. But it's hard for me to sympathize with them when they show great little car ideas in New York, have people vote on which should go into production, then shortly thereafter say something to the effect of "Oh... we weren't going to actually sell them in the US, we just wanted input. We might sell it sometime next decade" and be in no rush to bring out diesel engines.

But I don't want to be unfair to GM....Ford's guilty too. GM got back into the car game late, but at least they did get back into it. Ford all but abandoned the car market, and all the cars that should have been here are being sold everywhere else but here in North America.

My own Chrysler isn't off the hook either. Bringing out a fantastic 300 & Charger, and taking a ballsy move by bringing out the Magnum. RWD, well made, great materials for a car that price..... then they bring out the Sebring and Avenger that scream cheap materials and cut corners just like the old Chrysler Corperation.

 

The CAFE standards are really is not about the environment which congress uses that as a smoke screen, more of, foreign oil consumption they are worry about. If Americans have to pay more at the pump means less will be spent in stores or services which put a dent in our economy. This year gas prices for this year suppose to hit higher than $4.00 a gallon. With a car that only gets 15 mpg or lower is not being efficient at all. If you look at all the other countries there are using small cars because of their high prices, not to say that is the only reason, the streets are smaller, etc. However whatever country you see high gas prices you going to see smaller cars. Automakers got until 2020, but really 30 + mpg should of been in existence now, shouldn't have to be force for domestic automakers. They were focusing on other things to get them profit than ways to save customers less at the gas pump.

 

That is the main reason to support CAFE, as much as I hate the thought that I may never be able to buy another V8 car again. I read this blog daily - http://globaleconomicanalysis.blogspot.com/ - and I am really scared of what may happen to this country's economy in the next few years.